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Favorable Investment

  • Favorable Investment
    Tax Incentives
    Exemption from import tax, commodity tax and business tax on machinery and equipment, raw materials, fuel, supplies, semi-finished goods, samples and finished items needed for trade, warehousing or transshipment.
    Zero rate of business tax on products or services for export, and for machinery and equipment, raw materials, supplies, fuel, and semi-finished goods sold to businesses in EPZs, science-based industrial parks, bonded factories or bonded warehouses. (Also applicable for transactions within the EPZ)
    According to the Statute for Upgrading Industries, companies can apply for designation as a newly emerging, important and strategic industry, enabling them to enjoy a five-year exemption from business tax or shareholder investment credit against tax. Alternatively, the shareholders of such companies can be eligible for a credit against their payable tax. If an enterprise is registered as an operations headquarters, it can additionally apply for exemption from business income tax.
    Companies can credit investment in automation and pollution control equipment, R&D, and personnel training against their business tax payable that Year.
    Foreign profit-seeking companies that have branches in Taiwan and operate international logistics centers here, or contracts a domestic company to provide such services, can apply for exemption on business tax for such operations.
    Companies can enjoy a 50% reduction of building tax on self-use production Facilities, lowering the taxation rate to only 1.5%. In accordance with Article 14 of the Statute for the Establishment and Administration of Export Processing Zone, EPZ-based businesses engaged in transshipment operations are exempt from the 10% tax on transshipment income.
    Machinery and equipment used for more than five years can be shipped outside of the EPZs tax-free. 
    Sufficient Water and Power Supply
    A. Water Supply
     A maximum daily supply of 47,000 CMD.
    B. Power Supply
    An available voltage of 161KV and the maximum power supply of 480,000KW with 22.8KV.
    Single-stop & High Efficiency
     The single-stop process provides comprehensive services, including investment and plant locating, export/import, registration of business, construction and land administration, environmental protection, labor administration, and labor examination. The process of investment examination, business registration, and the issue of business registration certificate can be finished within 3-10 days; and it only takes 3-7 days to finish the application and approval of construction. To meet the companies’ needs, the customhouse, tax agents, postal offices, and banks will also station personnel to provide comprehensive services.
    Inexpensive Rentals
     The annual rental is 5% of the announced land value; the current monthly land value is NT$ 1.60per square meter.
    Small Share for the Construction Fees of Public Infrastructure
     The public infrastructure inside EPZ’s is built by the Administration with loan financing, and the construction costs are charged to tenant enterprises at the ratio of the land leased in order to repay the principal and the interest over a twenty-year period. (The estimated costs are approximately NT$14 per square meter after completion). The newly promulgated criteria will govern, and the construction fees of public infrastructure will be factored into the adjustment upon completion.
    Abundant Human Resources
     Abundant human resources are available because the Export Processing Zone is neighbored by Kaohsiung City, Kaohsiung County, Pingtung City, and Pingtung County, where there are many universities, colleges, and vocational high schools, including National Sun Yat-san University, Kaohsiung University, National Kaohsiung First University of Science and Technology, National Kaohsiung Marine University, I-Shou University, Shu-te University, Cheng-hsiu Technology College, Fooyin University, Kao Yuan Institute of Technology, as well as National Pingtung University of Science & Technology, Yung Ta Institute of Technology and Commerce, Tajen Institute of Technology, National Pingtung Institute of Commerce. The supply of talents in management and technology is abundant and so is the labor resource in Kaohsiung and Pingtung area.
    Clear Land Ownership
     The land of the Processing Zone is under the ownership of MOEA Export Processing Administration Headquarters and the plant shall be built on the land rented by the lessee and the ownership of the plant belongs the lessee. Such clear ownership ensures the right of both parties.
    Good Law and Order
     Surveillance systems are installed and security patrol teams are available, ensuring the residents’ safety of life and property.
    Wide Choices For Leisure Activities
     Surrounded by mountains and waters—the lofty Dawu mountain rage and winding coastline, Pingtung provides wide choices for leisure activities. One can enjoy the majesty and tranquility in the mountains, bathed in phytocid, listening to birds’ singing or go to the beach to listen to the waves splashing on the rock. The leisure activities help the workers to relax and get rid of tension and pressure. There are tourist attractions nearby, including Kenting National Park, Jialeshuei, Dapeng Bay, National Museum of Marine Biology and Aquarium, Sihjhong River Spring, Wutai Rukai Cultural Village, Sandimen Tourist Area, Liangshan Waterfall, Saijia Aviation Park, Chencing Lake, Maolin Scenic Spot, and Sizih Bay.
    Ideal Educational and Cultural Environment
     Around the neighborhood are many elementary schools, high schools, and universities; there are also Japanese School and American School, which can satisfy both local and foreign workers’ needs. 

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